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How to Leave Money to a Minor in a Will (UK Guide 2025)

· 33 min

Note: The following scenario is fictional and used for illustration.

Emma thought she had time to sort out her will. At 36, with a 3-year-old daughter and a baby on the way, she kept meaning to decide what would happen to her £180,000 estate if anything happened to her.

When she was diagnosed with an aggressive cancer, everything became urgent. But she'd never considered the legal complexity of leaving money to children under 18.

Her parents could become guardians, but could they access her money to raise the girls? At what age should her daughters inherit? Would her ex-partner's financial problems put the inheritance at risk? She discovered that without proper planning, her executors would hold the money in a basic trust until each child turned 18—potentially handing £90,000 to an immature teenager with no guidance or protection.

According to government statistics, 1 in 20 children will lose a parent before age 16, and every 22 minutes a parent dies in the UK leaving dependent children. Yet most parents don't understand how to structure inheritance for minors—or even that they legally can't hand money directly to children under 18.

This guide explains exactly how to leave money to minors in your will, the trust options available, and how to protect your children's financial future.

Table of Contents

Why You Can't Leave Money Directly to a Minor in UK Law

Under UK law, children under 18 cannot legally receive or manage inheritance. The Family Law Reform Act 1969 established 18 as the age of majority in England and Wales, meaning minors cannot provide "valid receipt" for money or property.

If your executor gave £50,000 directly to your 15-year-old son, and he spent it on a car that was later stolen, the executor could be personally sued by your son at age 18 for failing to protect his inheritance. This personal liability means executors must hold inheritance for minors in trust.

The legal framework comes from several pieces of legislation:

  • Trustee Act 1925, Section 31: Gives trustees discretion to use income for a minor's maintenance and education
  • Administration of Estates Act 1925: Requires executors to create statutory trusts for minor beneficiaries
  • Family Law Reform Act 1969: Establishes age of majority at 18

What happens if you die without a will?

If you die without specifying how inheritance should be held for minors, statutory trusts are automatically created under intestacy rules. Your executors must hold the money until each child turns 18, but with no guidance on how to use funds before then. They can't delay distribution beyond 18, and they receive no instructions about whether the child is mature enough to handle the money.

Sarah's father died without a will when she was 16. His £85,000 estate went into a statutory trust managed by distant relatives appointed as administrators. They refused to pay for her university education, saying they weren't sure it was allowed. At 18, Sarah received the full £85,000 with no experience managing money—and spent half within 18 months.

This is exactly what proper will planning prevents.

The 4 Main Ways to Leave Money to Minors in Your Will

You have four main options for structuring inheritance for children or grandchildren, each with different levels of control and flexibility.

Option 1: Statutory Trust (Default—No Planning)

If you name a minor as beneficiary without specifying trust terms, a statutory trust is created automatically. Your executors act as trustees and must hold the money until the child turns 18. This provides minimal flexibility—trustees can use income for the child's benefit under Section 31 of the Trustee Act 1925, but distribution at 18 is mandatory.

When to use: Never by choice. This only happens when you fail to plan properly.

Option 2: Bare Trust (Simple Trust)

The child gains an absolute right to both capital and income at 18. Trustees cannot refuse to hand over the money when the beneficiary reaches adulthood, even if they believe the child isn't ready.

James leaves £20,000 to his niece Sophie in a bare trust. The trustees invest the money and use some income for her school trips and music lessons. At 18, Sophie can demand the entire amount—even if the trustees think she should wait. They have no choice but to release the funds.

When to use: Smaller amounts (under £50,000), financially stable families, children likely to be mature at 18.

Option 3: Age-Contingent Trust

You specify that the child receives the inheritance at an age beyond 18—commonly 21, 25, or 30. This gives the child time to develop financial maturity while still guaranteeing distribution at the specified age.

Rachel wants to protect her son from impulsive decisions at 18 but doesn't want to lock the money away indefinitely. She specifies he receives 25% at 21 (after university), 50% at 25 (when he's more established), and the final 25% at 30. This provides gradual access while protecting against immature financial decisions.

When to use: Moderate to large amounts (£50,000-£200,000), children who will benefit from time to mature, parents who want certainty about distribution ages.

Option 4: Discretionary Trust (Maximum Flexibility)

Trustees have full discretion over when and how much to distribute to beneficiaries. You can specify age ranges (e.g., "trustees may distribute from age 21, must distribute by age 35"), but trustees decide based on the beneficiary's circumstances.

David sets up a discretionary trust for his daughter, who has a history of addiction. The trust document allows trustees to pay for her housing, education, and medical care directly, but never give her cash. The trustees can delay full distribution until she demonstrates five years of financial stability—even if that's well past age 25.

When to use: Large estates (£100,000+), concerns about maturity or addiction, complex family situations, protection from creditors or divorce.

Comparison of Trust Types:

Trust Type Age of Access Trustee Control Best For Tax Treatment
Statutory Trust 18 (fixed) Limited No planning (default) Child's tax rate
Bare Trust 18 (fixed) Cannot delay Small estates, stable families Child's tax rate
Age-Contingent 21, 25, 30+ (specified) Release at set age Medium estates, delayed maturity Depends on structure
Discretionary Flexible (21-35+) Full discretion Large estates, protection needs Trust tax rates apply

How Bare Trusts Work for Children and Grandchildren

A bare trust is the simplest and most common trust arrangement for minors. The beneficiary has an absolute right to the capital and income once they turn 18 (or 16 in Scotland), but the trustee holds and manages the assets until that age.

How it works in practice:

Grandmother Margaret leaves £30,000 to her 10-year-old grandson in a bare trust, appointing his parents as trustees. They invest the money in low-risk funds that grow over eight years. Each year, they use up to £2,000 of income for school trips, sports equipment, and music lessons—all legitimate uses under the Trustee Act.

At 18, the grandson gets the remaining balance (approximately £46,000 with growth) automatically. The trustees cannot refuse, cannot delay, and cannot impose conditions. The money is his completely.

Trustee duties in a bare trust:

  • Hold and invest the funds prudently
  • Use income for the child's maintenance and education as needed
  • Keep accurate records of all transactions
  • Hand over the full amount at age 18 without delay

Tax advantages:

Income generated by a bare trust is taxed at the child's personal tax rate. Since most children have no other income, they can use their full personal allowance (£12,570 in 2024-25). This means up to £12,570 in annual income is completely tax-free.

If you're a parent creating a bare trust for your own child, the "parental settlement" rules apply—if income exceeds £100 per year, it's taxed at your rate instead. This prevents income-shifting for tax avoidance. However, grandparents, aunts, uncles, and other relatives don't face this restriction.

When bare trusts work well:

  • Smaller inheritances (typically under £50,000)
  • Grandparents leaving money to grandchildren (tax-efficient)
  • Children from financially responsible families
  • Parents confident their child will be mature at 18

When bare trusts DON'T work:

  • Large sums that could be mismanaged
  • Family history of addiction or financial problems
  • Concerns about child's maturity at 18
  • Risk that inheritance could be claimed in future divorce or bankruptcy

The key limitation of bare trusts is their inflexibility. Once established, you cannot change the age of distribution beyond 18, and trustees must release the funds regardless of circumstances.

Discretionary Trusts: Maximum Protection and Flexibility

A discretionary trust gives trustees the power to decide when, how, and how much beneficiaries receive. This provides maximum protection against immature decisions, creditor claims, and family disputes—but comes with more complexity and potentially less favorable tax treatment.

How discretionary trusts work:

You name potential beneficiaries (your children, grandchildren, or others) and give trustees broad powers to distribute capital and income at their discretion. You can set parameters—"may distribute from age 21, must distribute by age 30"—but trustees make the final decisions.

Lisa worries about her 25-year-old daughter's gambling problem. She creates a discretionary trust with £150,000, naming her sister and a family solicitor as trustees. The trust document allows trustees to:

  • Pay the daughter's rent directly to landlords
  • Pay for education or vocational training
  • Provide medical care expenses
  • Distribute lump sums only if the daughter demonstrates financial stability

The trustees never give cash directly. At 35, if the daughter has shown five years of responsible financial behavior, the trustees can distribute the remaining funds. If not, they can continue holding the money indefinitely.

Protection benefits of discretionary trusts:

Asset protection: Because beneficiaries have no automatic right to trust funds, the inheritance is protected from:

  • Creditor claims if the beneficiary goes bankrupt
  • Divorce settlements (the money isn't the beneficiary's property until distributed)
  • Means-tested benefit assessments
  • Poor financial decisions during vulnerable periods

Family flexibility: Discretionary trusts can name multiple beneficiaries, allowing trustees to adjust distributions based on changing needs. If one child faces financial hardship while another is doing well, trustees can provide more support where it's needed.

When to use discretionary trusts:

  • Estates over £100,000 where protection is worth the cost
  • Concerns about a child's maturity, addiction, or financial judgment
  • Complex family situations (blended families, estranged relatives)
  • Protection from potential creditors or future spouses
  • Children with disabilities who may need long-term support

Tax implications:

Discretionary trusts face less favorable tax treatment than bare trusts:

  • Income tax: Trustees pay 45% on income (after the first £1,000)
  • Inheritance tax: Potentially subject to 10-year anniversary charges and exit charges
  • Capital gains tax: Trustees pay tax on gains at trust rates

For estates exceeding £325,000, professional tax advice is essential to structure discretionary trusts efficiently.

Letter of wishes:

Most solicitors recommend writing a non-binding "letter of wishes" alongside a discretionary trust. This private document explains your intentions to trustees without creating legal obligations:

"I created this trust for my daughter Sarah because she struggled with addiction in her twenties. I hope trustees will support her education and housing needs but avoid giving large cash sums until she demonstrates five years of sobriety. I want her to eventually receive the full inheritance when she's ready."

This guides trustees while preserving flexibility for changing circumstances.

Choosing the Right Age for Your Child to Inherit

The age you choose for your children to receive their inheritance is one of the most important decisions in your will. While 18 is the legal minimum, many parents choose older ages to protect against immature financial decisions.

Age 18 (Legal Minimum):

At 18, your child is legally an adult and can manage their own affairs. However, according to studies on financial capability, 18-24 year olds consistently score lowest in financial literacy assessments, with many lacking budgeting skills and experience managing significant sums.

For small amounts (under £10,000), age 18 may be appropriate—the inheritance can help with university costs or getting started in adult life. For larger sums, most parents choose to delay.

Age 21 (Common Choice):

By 21, most people have finished university or started their careers, giving them context for money's value.

Michael chooses 21 for his son's £60,000 inheritance because his son will have graduated, lived independently for three years, and started working. This real-world experience provides the foundation for responsible financial management.

Age 25 (Increasingly Popular):

Neuroscience research shows the prefrontal cortex—responsible for financial decision-making, impulse control, and long-term planning—doesn't fully develop until approximately age 25. This biological reality influences many parents.

For inheritances over £50,000, age 25 provides significant additional maturity without seeming unreasonably controlling.

Age 30+ (Large Estates):

For substantial inheritances (£100,000+), some parents choose 30 or beyond. By this age, most people are established in careers, may own property, and understand long-term financial planning.

Staged Distributions (Best of Both Worlds):

Rather than choosing a single age, you can structure staged releases:

Sarah specifies her daughter receives:

  • 25% at age 21 (£15,000) for a house deposit
  • 50% at age 25 (£30,000) for wedding, family, or business investment
  • 25% at age 30 (£15,000) when fully established in her career

This provides early access for important life milestones while protecting the majority until the child has more experience.

Factors to consider:

  • Amount of inheritance: Larger sums justify longer delays
  • Child's individual maturity: Consider personality and life circumstances
  • Family financial education: Have you taught money management skills?
  • Other resources available: Do they have other family support?
  • Inflation and investment: Money held for 12+ years needs growth strategy

Decision matrix:

Inheritance Amount Recommended Age Rationale
Under £10,000 18-21 Helps with university/training, limited risk
£10,000-£50,000 21-25 Significant but not life-changing, time to mature
£50,000-£100,000 25-30 Large sum requires maturity, staged release recommended
Over £100,000 25-35+ Consider discretionary trust, professional guidance

Remember: You can always update your will as your children grow and demonstrate financial maturity. Regular reviews ensure your plans remain appropriate.

How to Choose Trustees for Your Children's Inheritance

Trustees will manage your children's inheritance for years—potentially decades. Choosing the right people is critical to ensuring the money is protected and used appropriately.

Who can be a trustee:

Anyone over 18 with mental capacity can serve as a trustee. There's no requirement for professional qualifications, though financial experience is valuable. Trustees cannot have recent criminal convictions involving dishonesty.

Ideal trustee qualities:

Financial competence: Trustees must invest funds prudently, keep accurate records, and make sound financial decisions. An accountant, financial advisor, or successful business owner brings valuable expertise.

Trustworthiness: Trustees have legal control over substantial sums. Choose people with proven integrity who will always act in the children's best interests—never their own.

Good judgment: Trustees must make difficult decisions, like whether a 22-year-old is ready to receive £80,000. This requires wisdom, objectivity, and the ability to say "no" when necessary.

Relationship with children: Trustees should know your children well enough to understand their needs and circumstances, but not so emotionally involved that they can't make objective decisions.

Willingness to serve: Trusteeship involves ongoing responsibilities and potential personal liability. Always discuss with potential trustees before appointing them.

Who to consider:

Karen wants someone financially savvy but also someone who knows her daughter well. She appoints two trustees:

  • Her sister (an accountant with financial expertise)
  • Her best friend (who knows her daughter since birth and understands family dynamics)

This combination provides both financial competence and personal knowledge.

Should guardians also be trustees?

Many parents appoint their children's guardians as trustees for simplicity. However, this creates potential conflicts:

Pros:

  • Simplified decision-making (one person makes both care and financial choices)
  • Guardian understands child's needs intimately
  • Reduced complexity and communication challenges

Cons:

  • No oversight or accountability (guardian controls everything)
  • Potential conflicts of interest (using money for guardian's benefit)
  • Guardian may not have financial expertise

Best practice: Appoint the guardian as one trustee, but include at least one independent co-trustee for accountability. This prevents conflicts while maintaining the guardian's involvement in financial decisions.

Professional trustees:

For large estates (over £200,000) or complex family situations, consider appointing a professional trustee—a solicitor or accountancy firm—alongside family trustees.

Benefits: Professional expertise, continuity if individuals die or become incapable, reduced conflict in complicated families.

Costs: Typically 1-2% of trust assets annually, plus transaction fees. For a £150,000 trust, expect £1,500-£3,000 per year.

Number of trustees:

  • Minimum: One trustee is legally sufficient
  • Recommended: Two or three trustees for accountability and continuity
  • Maximum: Four trustees is common; more than four becomes unwieldy

With multiple trustees, decisions typically require majority agreement, preventing any single trustee from acting alone.

Appointing alternates:

Always name alternate trustees in case your first choices die, decline, or become unable to serve:

"I appoint my sister Jane Smith and my friend David Jones as trustees. If either is unable or unwilling to serve, I appoint my cousin Sarah Williams as replacement trustee."

Trustee compensation:

Trustees can claim reasonable expenses (travel, postage, professional advice). Some wills specify trustee fees—typically 0.5-1% annually for non-professional trustees. For complex trusts requiring significant time, reasonable compensation prevents trustees from declining to serve.

What Trustees Can and Cannot Do with a Minor's Money

Trustees have significant powers over inheritance for minors, but they're constrained by legal duties and trust terms. Understanding these boundaries protects both children and trustees.

What trustees CAN use money for (Section 31, Trustee Act 1925):

Trustees have broad discretion to use income—and sometimes capital—for a minor's benefit:

Education expenses:

  • School fees (private or specialist education)
  • University tuition and living costs
  • Books, equipment, computers
  • Educational trips and experiences
  • Tutoring or additional support

Maintenance and living expenses:

  • Clothing and personal items
  • Medical and dental care
  • Extracurricular activities (sports, music lessons)
  • School trips and holidays
  • Travel expenses for education

Other beneficial purposes:

  • Driving lessons
  • Professional training or apprenticeships
  • Starting university (accommodation deposits)
  • Technology needed for education

Tom's trustees used his £40,000 inheritance to pay:

  • £8,000 per year for private school (six years)
  • £3,000 for university accommodation deposit
  • £1,500 for a laptop and software for his engineering degree
  • £800 for driving lessons

All these uses were legitimate exercises of trustee discretion under Section 31.

What trustees CANNOT do:

Use money for their own benefit: Trustees cannot pay themselves (unless the will specifically authorizes fees), borrow trust money, or benefit personally from trust assets. This is a breach of trust that creates personal liability.

Tom's trustee paid £2,000 for his own car repairs from the trust account, claiming he "needed the car to visit Tom at university." This was a clear breach—the trustee was personally liable to repay the £2,000 plus interest.

Make excessively risky investments: Trustees must invest prudently according to the Trustee Act 2000's "standard of care". Speculating on cryptocurrency or individual stocks without professional advice could breach this duty.

Give trust money to other beneficiaries: Unless the trust terms specifically allow it, trustees cannot distribute to anyone except the named beneficiary.

Pay guardians for raising the child: This is complicated. Trustees can use trust money for the child's maintenance, which the guardian provides. But paying the guardian directly is problematic without explicit will provisions.

Income vs. capital:

Trustees typically have broader powers over income than capital:

  • Income: Dividends, interest, rental income. Section 31 gives trustees wide discretion to use income for maintenance and education.
  • Capital: The original inheritance amount. Trustees usually need specific authorization in the trust document or court permission to spend capital before the distribution age.

Record-keeping requirements:

Trustees must keep detailed accounts showing:

  • All income received (interest, dividends)
  • All expenses paid (with receipts and justification)
  • Investment decisions and rationale
  • Distribution dates and amounts

At 18 (or whenever the child receives the inheritance), beneficiaries can demand full accounts. Poor record-keeping exposes trustees to personal liability if they cannot justify their actions.

Investment duties:

The Trustee Act 2000 requires trustees to:

  • Review investments regularly
  • Invest as prudently as if investing their own money
  • Seek professional advice for complex decisions
  • Diversify investments to manage risk
  • Consider the "standard investment criteria" (suitability and diversification)

For trusts over £50,000 or lasting more than five years, trustees should consult Independent Financial Advisors to ensure appropriate investment strategies.

Trustee liability:

Trustees are personally liable for breaches of trust. If they misuse funds, make inappropriate investments, or fail to keep records, beneficiaries can sue them personally—even years after the trust ends.

This risk emphasizes why choosing competent, trustworthy trustees is so important.

Tax Implications of Leaving Money to Minors

Tax treatment of minors' trusts varies depending on the trust type and estate size. Understanding the basics helps you structure inheritance efficiently, though professional advice is essential for estates over £325,000.

Inheritance Tax (When You Die):

When you die, your estate may be subject to Inheritance Tax (IHT) before anything reaches your children:

  • Nil-rate band: £325,000 is tax-free
  • Residence nil-rate band: Additional £175,000 if leaving your home to children or grandchildren (total £500,000)
  • Rate: 40% on amounts exceeding these thresholds

Example: Estate worth £400,000, leaving everything to two children in trust:

  • £325,000 nil-rate band: Tax-free
  • £75,000 excess: £75,000 × 40% = £30,000 IHT
  • Children inherit: £370,000 (after tax)

If you're married, unused nil-rate bands transfer to your surviving spouse, potentially allowing £1,000,000 to pass tax-free to children after both parents have died.

Income Tax (On Trust Income):

Once the inheritance is in trust, income generated is taxed based on trust type:

Bare Trusts:

Income is taxed at the child's personal rate. If the child has no other income, they can use their full personal allowance (£12,570 in 2024-25), meaning income is tax-free.

Example: £50,000 inheritance invested at 5% = £2,500 annual income

  • Child with no other income: £0 tax (within personal allowance)
  • Total income received: £2,500

Exception—Parental settlements: If a parent creates a bare trust for their own child and income exceeds £100 per year, it's taxed at the parent's rate to prevent income-shifting. This doesn't apply to trusts created by grandparents or other relatives.

Discretionary Trusts:

Trustees pay tax on trust income:

  • First £1,000: Taxed at basic rate (20% on savings income, 8.75% on dividends)
  • Income above £1,000: Taxed at 45% (or 39.35% on dividends)

Example: £100,000 inheritance invested at 5% = £5,000 annual income

  • First £1,000: £200 tax
  • Remaining £4,000: £1,800 tax (45%)
  • Total tax: £2,000
  • Income remaining: £3,000

This higher tax rate is the price of the protection and flexibility discretionary trusts provide.

Capital Gains Tax:

If trustees sell investments that have grown in value, they may pay Capital Gains Tax on profits. Trusts have a much lower annual exemption (£3,000 in 2024-25) than individuals (£6,000), making CGT planning important for larger trusts.

Trust Registration Service:

Since 2017, most trusts must register with HMRC's Trust Registration Service (TRS). This applies to trusts created by will that continue beyond estate administration. Trustees must register within 90 days of becoming a registrable trust.

Special Trust Types:

Two trust types receive favorable IHT treatment for minors who've lost a parent:

  • Bereaved minor trusts: For children under 18 who've lost a parent. No IHT 10-year charges if distributed by age 18.
  • Age 18-25 trusts: Allow distribution up to age 25 without IHT charges, provided the child has lost a parent.

HMRC guidance on bereaved minor trusts provides full details on qualification and tax treatment.

Tax planning strategies:

  • Use bare trusts for smaller estates (under £50,000) to benefit from child's personal allowance
  • Consider age-contingent trusts structured to minimize ongoing tax
  • For estates over £325,000, seek professional advice on discretionary trust vs. alternatives
  • Grandparents can create tax-efficient bare trusts without parental settlement rules

Important: This is an overview, not tax advice. Tax rules change frequently, and individual circumstances vary. For estates over £325,000 or complex family situations, consult a qualified tax advisor or accountant before finalizing trust structures.

Common Mistakes When Leaving Money to Minors (And How to Avoid Them)

Even well-intentioned parents make mistakes when structuring inheritance for children. Understanding common pitfalls helps you avoid costly errors.

Mistake 1: Not Appointing Specific Trustees

The problem: Many people assume their executors will automatically manage trusts for minors. While executors do become default trustees, they may not be suitable for long-term management—particularly if the inheritance won't be distributed for 10+ years.

The consequence: An executor who's excellent at administering estates may have no investment experience or may be elderly themselves, potentially dying before the child reaches inheritance age.

The fix: Always appoint specific trustees with the right skills and relationship with your children. Name alternates in case your first choices cannot serve.

Mistake 2: Making Guardians the Sole Trustees

The problem: Appointing your children's guardian as the only trustee creates a conflict of interest. The guardian controls both the child's care and their financial inheritance with no oversight.

Example: A guardian-trustee uses £20,000 per year from the child's trust for "living expenses." The child at 18 claims this was excessive—but with no independent oversight, it's impossible to verify whether the spending was appropriate. The child sues the trustee for breach of duty.

The fix: Appoint at least one independent co-trustee alongside the guardian for accountability. This protects both the child and the guardian from accusations of misuse.

Mistake 3: Setting the Age Too Young

The problem: Defaulting to age 18 without considering whether your child will be mature enough to handle a large sum.

Example: Dad leaves £100,000 to his son in a bare trust. At 18, the son receives the full amount, buys an expensive car, lends money to friends who never repay, and within two years has only £20,000 left. There's no way to undo this mistake.

The fix: Consider age 21, 25, or staged distributions for amounts over £50,000. You can always update your will if circumstances change.

Mistake 4: No Guidance to Trustees

The problem: Trustees don't know your intentions for the money—education priority? Help buying a home? Emergency use only?

The consequence: Trustees may be overly conservative (refusing legitimate requests) or overly generous (depleting funds before the child reaches inheritance age).

The fix: Write a letter of wishes explaining how you want funds used:

"I created this trust to ensure my daughter has financial security. I hope trustees will prioritize:

  1. Education costs (university, postgraduate, vocational training)
  2. Help with first home deposit (up to £30,000)
  3. Emergency medical or living expenses
  4. Starting a business if she has a solid plan

I don't want money used for luxury purchases before age 25."

This guides trustees while preserving flexibility.

Mistake 5: Forgetting to Update After Life Changes

The problem: Wills become outdated when circumstances change—additional children born, trustees die or move abroad, assets grow significantly.

Example: Dad wrote his will in 2018 when his estate was £150,000. By 2025, his home value and pension brought his estate to £425,000—now subject to Inheritance Tax. His trust provisions don't account for the tax implications or larger sums involved.

The fix: Review your will every 3-5 years or after major life events (birth of children, significant asset changes, divorce, house purchase, trustee death).

Mistake 6: Leaving Unequal Amounts Without Explanation

The problem: Unequal bequests can cause lifelong family resentment if children don't understand the reasoning.

Example: Dad left £50,000 to his son and £10,000 to his daughter. The daughter felt hurt and angry—what she didn't know was that Dad had already given her £40,000 toward her house deposit five years earlier, equalizing the total gifts.

The fix: If leaving unequal amounts, explain why in your will or letter of wishes:

"I am leaving my son £50,000 and my daughter £10,000 because I previously gave my daughter £40,000 toward her house purchase in 2020. This ensures both children receive approximately equal total gifts."

Grandparent-specific mistake: Not Including Future Grandchildren

Example: Grandmother's will says "I leave £10,000 to each of my grandchildren: Emma, James, and Sophie." Two years later, another grandchild is born. That child receives nothing because the will named specific individuals.

The fix: Use inclusive language: "I leave £10,000 to each of my grandchildren living at my death, whether now born or hereafter born."

How to Set Up Trust Provisions in Your Will

Creating trust provisions for minor beneficiaries is straightforward with proper guidance. Here's the step-by-step process for ensuring your children's inheritance is protected.

Step 1: Decide Which Trust Type

Use the decision framework from earlier sections:

  • Bare trust: Smaller amounts (under £50,000), stable families, children likely mature at 18
  • Age-contingent trust: Medium amounts (£50,000-£100,000), desire for delayed distribution
  • Discretionary trust: Large amounts (over £100,000), concerns about maturity or protection needs

For most families with estates under £200,000, age-contingent trusts (distribution at 21 or 25) provide the best balance of protection and simplicity.

Step 2: Choose the Age(s)

Consider:

  • Amount of inheritance (larger = older age)
  • Child's individual maturity level
  • Whether staged distributions make sense
  • Inflation implications if delaying 15+ years

Step 3: Select Trustees

Choose 2-3 trustees who are:

  • Financially competent
  • Trustworthy and responsible
  • Willing to serve for potentially 15+ years
  • Able to work together cooperatively

Always appoint alternates in case first choices cannot serve.

Step 4: Write Trust Provisions

Your will must include these essential elements:

  • Names of beneficiaries (children or grandchildren)
  • Age(s) at which they inherit
  • Trustee powers and limitations
  • Investment guidelines
  • Trustee compensation (if any)
  • What happens if a beneficiary dies before receiving inheritance

Step 5: Draft a Letter of Wishes (Optional but Recommended)

Write a non-binding letter explaining your intentions to trustees:

"Dear Trustees,

I've created this trust for my daughter Emma because I want to ensure she has financial security without overwhelming her at 18. I hope you'll use the trust funds for:

  • Her university education (fees and living costs)
  • Help with a house deposit when she's ready (up to £40,000)
  • Starting a business if she has a solid plan

Please don't feel obligated to distribute everything at 25 if you believe she needs more time to mature. I trust your judgment.

Thank you for taking on this responsibility."

Step 6: Discuss with Trustees

Before finalizing your will, speak with your chosen trustees to ensure they:

  • Understand their responsibilities
  • Are willing to serve
  • Know where to find your will and letter of wishes
  • Have your solicitor or executor's contact information

Never surprise someone by appointing them as trustee without discussion.

Step 7: Store Your Will Safely

Keep your will in a secure location and ensure your executors know where to find it:

  • Home safe
  • Solicitor's office
  • Bank safe deposit box
  • Probate registry (for a small fee)

Tell your executors, trustees, and close family members where your will is stored.

Two Paths to Creating Trust Provisions:

DIY Online Will Service (Like WUHLD):

For straightforward estates and family situations, online will services guide you through creating legally binding trust provisions:

  • Answer questions about your children, their ages, and your wishes
  • Choose trust type and distribution ages
  • Select trustees and alternates
  • System generates proper legal language automatically
  • Preview complete will before paying

Best for: Estates under £500,000, straightforward family structures, standard trust provisions.

Cost: £99.99 with WUHLD vs. £650+ for solicitor.

Solicitor-Drafted Will:

For complex situations, professional legal advice may be necessary:

  • Estates over £500,000
  • Complex tax planning requirements
  • Discretionary trusts with sophisticated provisions
  • Blended families or contentious situations
  • Special needs trusts
  • International assets or beneficiaries

Cost: £650-£1,500+ depending on complexity.

When DIY is Sufficient:

Most families with straightforward situations can use online services effectively:

  • Estate under £500,000
  • Children from one relationship
  • Standard age-contingent or bare trusts
  • Clear trustee choices
  • No special tax planning needed

WUHLD's guided process asks specific questions about your circumstances and generates legally binding trust provisions that meet all UK legal requirements under the Trustee Act 1925 and related legislation.

Legal Validity:

Trust provisions created through WUHLD are legally binding and have the same force as solicitor-drafted wills, provided you meet all execution requirements (proper signing and witnessing). The platform is designed to handle the most common trust scenarios families face.

Frequently Asked Questions About Leaving Money to Minors

Q: Can you leave money to a child under 18 in your will?

A: Yes, you can leave money to a child under 18 in your will. However, the child cannot receive the money directly until they turn 18. The funds will be held in trust by your executors or appointed trustees, who can use the money for the child's benefit (education, maintenance) until they reach adulthood.

Q: What is the best age to leave inheritance to a child?

A: The legal minimum age is 18, but many parents choose 21 or 25 to ensure greater financial maturity. You can also structure staged distributions (e.g., 25% at 21, 50% at 25, remainder at 30) to protect against immature financial decisions while providing gradual access to funds.

Q: What happens if I don't set up a trust for a minor beneficiary?

A: If you don't explicitly set up a trust, one will be created automatically. Your executors will be required to hold the inheritance in a statutory trust until the child turns 18. However, without clear instructions, trustees may lack guidance on how to use the funds for the child's benefit before they reach adulthood.

Q: Can a trustee refuse to give money to a beneficiary at 18?

A: In a bare trust, once the beneficiary turns 18, they have an absolute right to the inheritance and the trustee must release it. However, in a discretionary trust, trustees can delay distribution or impose conditions, provided these terms are clearly specified in your will.

Q: Who should I choose as a trustee for my children's inheritance?

A: Choose someone financially responsible, trustworthy, and who knows your children well. Many parents select their spouse, a sibling, or a close friend. You can also appoint professional trustees (solicitors or accountants) for larger estates or complex situations. Always appoint at least two trustees for accountability.

Q: What's the difference between a bare trust and a discretionary trust for minors?

A: A bare trust gives the child absolute rights to the money at 18—trustees cannot withhold it. A discretionary trust gives trustees flexibility to decide when and how much to distribute, potentially delaying until 21, 25, or beyond, and can protect the inheritance from divorce or bankruptcy claims.

Q: Do I need to pay tax on money left to a minor in my will?

A: Inheritance tax may apply if your estate exceeds £325,000 (or £500,000 if leaving your home to children). Once in trust, income generated is taxed at the child's tax rate (usually 0% if they have no other income). Different trust types have different tax treatments, so consult a tax advisor for complex estates.

Conclusion

Leaving money to children or grandchildren requires careful planning to ensure they're protected while giving them the financial foundation you intend. The key decisions are:

Essential steps for protecting your children's inheritance:

  • Choose the right trust type for your family situation and estate size
  • Select an appropriate age (or ages) for children to receive inheritance
  • Appoint responsible, capable trustees with proper accountability
  • Provide clear guidance about your intentions through trust provisions or a letter of wishes
  • Review and update your will every 3-5 years as circumstances change

Whether you're leaving £20,000 or £200,000, proper trust provisions transform a potential problem (immature teenager receiving large sums) into a solution (gradual, protected access as your child matures).

Emma faced her cancer diagnosis knowing her daughters would be protected. She created an age-contingent trust with her parents and sister as trustees, specifying her daughters would receive their inheritance at 25. The trust provisions included guidance prioritizing education and housing support, with staged distributions if circumstances required earlier access.

Her daughters grew up knowing their mother had planned carefully for their future—even in her darkest moment.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

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